ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, March 6, 1996 TAG: 9603060045
SECTION: BUSINESS PAGE: B8 EDITION: METRO
DATELINE: NEW YORK
SOURCE: ASSOCIATED PRESS
The heads of America's biggest companies saw their compensation rise 23 percent in 1995, even as companies nationwide laid off thousands of workers.
The average compensation for chief executives of major companies was $4.37 million last year, a quarter of which came from salary and the rest from annual bonuses and stock options.
The finding by Pearl Meyer & Partners could be more fodder for the presidential campaign, with Republican hopefuls and the Democratic incumbent already taking on big business for eliminating jobs as profits rise.
The consulting firm queried 35 service and industrial companies with average revenues of $21 billion. It found CEO base salaries at the companies increased to $991,300, a 4 percent jump over the 1994 salary of $950,700.
In addition, the average stock option was valued at $1.52 million, a 45 percent increase over 1994's $1.05 million. The average bonus, which was paid in 1995 for performance in 1994, was $1.22 million, a 39 percent increase over the prior year's bonus of $876,000.
``The big increases have reflected the major moves in stock performance,'' Diane D. Posnak, managing director of Pearl Meyer, said.
Posnak would not disclose which companies were included in the survey, saying only they were ``Fortune 100 types'' that had been surveyed in previous years.
The generous CEO salaries at a time when many businesses are handing out pink slips has led GOP presidential contenders to bash big business. Pat Buchanan - who holds between $15,000 and $50,000 worth of AT&T stock - urged a ``peasant'' revolt against the corporate establishment.
``Corporate profits are setting records and so are corporate layoffs,'' Bob Dole told the New Hampshire Legislature before the primary. In another speech, he said, ``These are the best of times for many who work on Wall Street,'' but ``they are also the worst of times for many who live and work on Main Street America.''
And President Clinton this week demanded more responsibility from companies that lay off workers ``even when their profits are going up.''
LENGTH: Short : 46 linesby CNB